SSB Consults Public on Proposed Contribution Changes

The Social Security Board (SSB) hosted a major stakeholder consultation this afternoon at the Grand Resort and Residences in Belize City, the latest in a series of 12 public meetings held across the country from Corozal to Dangriga.

On the table are proposed changes to how contributions are calculated, how they are split between workers and employers, and the wage levels at which contributions kick in and cap out.

SSB Chief Executive Officer Jerome Palma was direct about why the changes are needed. “A scheme that was developed in 1981, for a time and a condition that was appropriate in 1981, may need some reform in 2026 and moving forward,” he said. “In 1981, there were no call centres. The investment market was distinctly different. Technology has moved forward.”

The three main proposals under discussion are a new method for calculating contributions, a revised split between what employees and employers each pay into the fund, and a review of the contribution floor, which is the minimum wage level at which contributions begin.

The current system calculates contributions based on gross salary and caps out at $520 per week. Palma noted that nearly 25 – 30% of contributors are already hitting that ceiling, a sign the system has not kept pace with how much Belizeans are actually earning.

One participant challenged the board directly on the use of gross salary as the basis for contributions, pointing out that take-home pay can be nearly half of what appears on a pay slip after taxes and deductions.

“We don’t live on our gross salary,” the participant said. “By the time I actually get money in my pocket, it’s half of what it says on the payslip… When you are considering the split, please consider how heavily taxed we are.”

Another raised concerns about lower-income workers, noting a significant gap between contribution bands and calling on the board to ensure fairness across the wage spectrum.

“That’s a big jump for workers at the lower end,” the participant said. “You have to be fair and transparent. You can’t look at the lower bands and not look at the higher bands.”

Palma acknowledged the concern, confirming that roughly 6,000 contributors currently fall into the lowest band and that the board is mindful of protecting them.

“It’s very important for us to have this split very similar to what it is at the moment, where the employer actually pays and contributes at a higher rate than the employee, especially at the lower bands,” he said.

Future consultations will be at San Pedro on April 21st, Punta Gorda on April 28th, and Placencia on April 30th, which will complete three months of the nationwide consultation process.